Noram Lithium | INN


Review

Pushed via expanding call for from the electrical car business, the outlook for lithium is promising and forecasts are appearing no indicators of slowing down. On most sensible of this emerging call for, the United States govt has additionally deemed lithium a “vital subject material” and launched a Nationwide Blueprint that outlines a function to safe get right of entry to to uncooked fabrics for lithium batteries and determine a program to extend home processing and manufacturing.

As the rush to broaden a home provide chain for lithium batteries in the United States will get underway, one area within the nation sticks out a number of the relaxation. Nevada’s Clayton Valley is house to the handiest working lithium brine mine in the United States –– Albemarle’s (NYSE:ALB) Silver Top Lithium Mine, which has produced lithium for greater than 60 years. Nevada is ranked the most sensible mining jurisdiction on this planet in accordance with funding good looks in 2020. Of be aware, Albemarle has indicated it’s making plans on doubling its Silver Top’s lithium manufacturing via 2025.

One corporate all for a challenge in Clayton Valley, Nevada, is Noram Lithium (TSXV:NRM; OTCQB:NRVTF; FRA:N7R). Noram Lithium’s flagship Zeus challenge is a high-grade lithium challenge that spans 2,800 acres, situated adjoining to Albemarle’s Silver Top Lithium Mine, with intensive infrastructure together with energy at website a paved freeway at once to the challenge. It is usually in the similar state as Tesla’s (NASDAQ:TSLA) first Gigafactory.

Noram Lithium

A Initial Financial Evaluate (“PEA”) at the Zeus challenge confirmed tough economics indicating a US$1.299 billion after-tax internet provide price (“NPV”) (8percent) with a 31 % after-tax interior fee of go back, spanning a mine lifetime of 40 years. The present useful resource has indicated assets for as much as 200 years of operation.

Noram Lithium is totally funded with a powerful money place to advance and de-risk its Zeus challenge with an competitive construction plan set for 2022. Construction plans come with updating the challenge’s useful resource with a drill program in Q1/2022, finishing further metallurgical and prefeasibility research (“PFS) to additional reinforce the challenge’s economics, and entire baseline environmental research and inexperienced tasks.

Corporate Highlights

  • Noram Lithium’s flagship Zeus challenge has a initial financial review that signifies tough economics: a US$1.299 billion after-tax NPV (8percent), a 31percent IRR” and a mine lifetime of 40 years.
  • one hundred pc owned and not using a underlying NSR.
  • A vital mineral useful resource estimate at cut-off grades of 400 ppm, together with a complete measured and indicated useful resource of one.8 million tonnes of lithium carbonate an identical and a complete inferred useful resource of three.9 million tonnes of lithium carbonate an identical.
  • Zeus includes a high-grade and shallow lithium deposit, which might lead to a reasonably low cost operation supported via excessive lithium recoveries and coffee contamination.
  • Located close to Albemarle’s Silver Top, which is the one different US manufacturer of lithium.
  • Noram’s proportion construction stays tight with beneath 75M stocks issued, with roughly 20percent managed via control and insiders.

Key Tasks

Zeus

Zeus project

The flagship Zeus challenge is a high-grade lithium challenge situated in Clayton Valley in Nevada, close to the one different US manufacturer of lithium, Albemarle’s Silver Top. The two,800 acre belongings options get right of entry to to a highway, energy and intensive infrastructure close by. The Zeus challenge hosts a large-scale deposit situated close to the skin with minimal to nil overburden this is appropriate for standard mining strategies and could be a reasonably low cost operation.

The initial useful resource estimate at the Zeus challenge confirmed tough economics. Highlights come with (all $ are expressed in US$):

  • $1.299 Billion NPV” (After-Tax) at 8percent cut price fee with a 31percent IRR.
  • Capital Prices (“CAPEX”) estimated at $528M with after-tax payback length of three.23 years.
  • Gross Earnings of $303.4 Million/yr or $12.14 billion over its mine existence.
  • Low Working Price. Working Price (“OPEX”) of $3,355.30/tonne Lithium Carbonate Identical (“LCE”) with a break-even worth of $4016.6/tonne LCE LOM. Working price according to tonne puts the Zeus initiatives among the bottom within the business.
  • Lengthy Mine Lifestyles (“LOM). The mine manufacturing fee all the way through complete operation is ready at 17,000 tpd. The manufacturing agenda makes use of ore from the primary 11 levels, which ends up in 40-year mine existence (“LOM”). The mine manufacturing agenda leads to 245.4 million tonnes averaging 1,093 ppm Li.
  • Very Low Strip Ratio. Mining strip ratios are very low, averaging 0.07:1 for LOM. Mining is composed of a truck and shovel way, with blasting being pointless because of the ore softness.
  • Low Environmental Affect. The leaching and filtration flowsheet comprises dry stack tailings, thus, getting rid of the environmental menace and long-term control problems related to tailings ponds.
  • LCE marketplace Value. Base case marketplace worth of $9500/tonne LCE is easily beneath longer term forecasted fee of $14,000/tonne. Value Sensitivity. The after-tax NPV reaches $2.665 billion at $14,250/Tonne LCE (8percent cut price fee). On January 13, 2022, LCE used to be recently promoting for ~US$50,000/tonner
Zeus

Noram Lithium President and COO Peter Ball shared in an interview with INN, “Those numbers are impressive for the place we’re. It is going to be a possibility for shareholders.”

Noram Lithium CEO and Director Sandy MacDougall mentioned, “This find out about represents probably the most vital milestone to this point for Noram and establishes us amongst restricted friends as the most recent low price, high-grade, near-term lithium manufacturing tale in North The us.”

Zeus project

In a analysis file, impartial analyst Elementary Analysis Corp. (on December 15, 2021) gave the corporate a peer-compared honest price of C$2.65 after reviewing Noram’s fresh PEA announcement.

Noram Lithium plans to additional improve the useful resource with further infill drilling of 12 holes deliberate for the primary quarter of 2022. The corporate additionally plans to finish an extra follow-up metallurgical find out about within the first part of 2022 after which entire a prefeasibility find out about (“PFS”) in the second one part of 2022.

Control Group

Anita Algie – Chair & CFO

Anita Algie has over 15 years of enjoy in control, listings, compliance, company construction and construction in addition to mergers and acquisitions for exploration- and resource-based public corporations. She is the previous president and CEO of Cohesion Metals Corp. (TSXV:UTY). She could also be the previous president, CEO and director of American Lithium Corp. (TSXV:LI) and First Cobalt Corp. (TSXV:FCC). Algie has served on a lot of forums all the way through her profession within the public markets and makes a speciality of sourcing, obtaining and growing non-grass roots houses. Algie has additionally effectively finished a number of CPC Qualifying Transactions with the TSX Challenge Change. She is an Honors Human Body structure graduate from the College of British Columbia.

Sandy MacDougall – CEO & Director

Sandy MacDougall is an Economics graduate of the College of British Columbia. MacDougall has over 30 years of enjoy within the funding banking and finance business. He used to be a former funding guide at Canaccord Capital Corp. and used to be interested in a lot of vital financings in Canada and in a foreign country for a variety of corporations. His enjoy comprises intensive publicity to valuable and base steel initiatives right through North and South The us. He used to be prior to now Chairman of the Board from 2016 to 2021.

Peter A. Ball – President & COO

Peter Ball brings over 30 years of intensive enjoy as a mining skilled in any respect ranges of management. During Ball’s profession, he has held quite a lot of senior control roles with global mining corporations, together with company finance, securities buying and selling, mine engineering, trade construction, company communications, public members of the family and advertising purposes. Balls’ control enjoy is right through North and South The us, Asia and Europe. Ball started his profession within the past due Nineteen Eighties running as a mining engineer, a technical consultant and in quite a lot of control and senior government roles. Ball held those roles at a lot of corporations, together with NV Gold Redstar Gold , Columbus Gold , Hudson Bay Mining & Smelting, Echo Bay Mines Ltd., RBC Dominion Securities and Eldorado Gold Corp. Ball is a graduate of the Haileybury College of Mines, Georgian Industry Faculty and UBC’s Canadian Securities Direction. Ball could also be a member of CIMM. Ball has led and assisted in elevating over $250M of capital within the useful resource sector.

Arthur Brown – Director

Arthur Brown brings 36 years of industrial enjoy to Noram’s board. He has served at the forums of 8 different corporations in sectors starting from generation to grease and fuel and mineral exploration. Brown has really extensive wisdom and enjoy in company construction and construction, financings and project capital. Brown understands the entire facets and necessities {that a} public corporate should need to function effectively. This data and enjoy had been translated into many a hit financings for the quite a lot of corporations that he has been concerned with.

Adam Falkoff – Impartial Director

Adam Falkoff has over two decades of enjoy in public coverage, global members of the family and trade construction. He has steered CEOs of the Fortune 100, presidents, top ministers, cupboard ministers and ambassadors because the president of CapitalKeys. CapitalKeys is a bipartisan world public coverage and strategic consulting company founded in Washington, D.C. with places of work in London and Singapore. Because the president of CapitalKeys, he has effectively helped clientele perceive, look ahead to and navigate the complicated public coverage surroundings in addition to broaden methods for trade construction riding consumer revenues. He’s additionally the period in-between president of RARE, The Affiliation for Uncommon Earth. He’s a 2018 recipient of the Ellis Island Medal of Honor for provider to the United States. He used to be additionally named to the Washington, D.C. Energy 100 which is a listing of the 100 maximum influential non-elected other folks via Washington Lifestyles Mag.

Falkoff gained a Bachelor of Arts from Duke College. He additionally gained an M.B.A. and M.I.M. (Grasp of Global Control) from the Thunderbird College of World Control on an educational scholarship. Falkoff additionally holds a Certificates in Global Legislation from the College of Salzburg’s Institute on Global Criminal Research. The coursework used to be advised via Very best Courtroom Justices Anthony Kennedy and John Paul Stevens. He additionally participated within the Postgraduate Programme of the College of Mining Engineering on the College of Witwatersrand in Johannesburg, South Africa this is referred to as the sector’s preeminent establishment within the box of global mining and mining research.

Cyrus Driving force – Impartial Director

Cyrus Driving force is a chartered accountant and a founding spouse within the company of Driving force Anderson since its inception in 1982. Driving force is a retired spouse within the company of Davidson and Corporate LLP. Driving force has a large wisdom of the securities business and its regulations which has enabled him to provide precious recommendation to shoppers with admire to finance, taxation and different accounting-related issues. While offering common public accounting services and products to a variety of shoppers, he makes a speciality of servicing TSX Challenge-listed corporations and individuals of the brokerage neighborhood. He recently serves as director and/or CFO of a number of TSX-V indexed corporations.

Brad Peek, CPG – Senior Marketing consultant Geologist

Brad Peek has greater than 40 years of enjoy in challenge control, mineral exploration and laptop programs within the mining business. Peek has 11 years of enjoy with a water engineering advisor company. Peek gained a Bachelor of Science stage in Geology from the College of Nebraska and a Grasp of Science stage in Geology from the College of Alaska. He’s a member of the Society of Financial Geologists in addition to the Society of Mining, Metallurgy and Exploration. Peek could also be a Qualified Skilled Geologist, CPG11299 of the AIME American Institute of Skilled.





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